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Tolerance, agglomeration, and enterprise innovation performance: a multilevel analysis of Latin American regions

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  • Jana Schmutzler
  • Edward Lorenz

Abstract

In this article we examine the effect regional tolerance has on the innovation performance of firms in regions of seven Latin American countries. We hypothesize that tolerance positively influences the innovation performance of firms by attracting human talent and lowering barriers for face-to-face interaction leading to knowledge exchange within a region. This effect is magnified in regions with high agglomeration economies. The empirical analysis which relies on a multilevel design shows that regional differences in tolerance matter for product innovation.

Suggested Citation

  • Jana Schmutzler & Edward Lorenz, 2018. "Tolerance, agglomeration, and enterprise innovation performance: a multilevel analysis of Latin American regions," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 243-268.
    • Handle: RePEc:oup:indcch:v:27:y:2018:i:2:p:243-268.
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    File URL: http://hdl.handle.net/10.1093/icc/dtx034
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    Cited by:

    1. Hamidi, Shima & Zandiatashbar, Ahoura & Bonakdar, Ahmad, 2019. "The relationship between regional compactness and regional innovation capacity (RIC): Empirical evidence from a national study," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 394-402.
    2. Paula Prenzel & Niels Bosma & Veronique Schutjens & Erik Stam, 2022. "Cultural diversity and innovation-oriented entrepreneurship," Papers in Evolutionary Economic Geography (PEEG) 2205, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2022.
    3. Mohamed Amara, 2023. "Agglomeration and firm performance in times of economic turmoil: Evidence from Tunisian firm‐level data," Growth and Change, Wiley Blackwell, vol. 54(2), pages 446-481, June.
    4. Polterovich, Victor, 2017. "Толерантность, Сотрудничество И Экономический Рост [Tolerance, collaboration and economic growth]," MPRA Paper 81277, University Library of Munich, Germany.
    5. Fernando Bruna & Juan Fernández‐Sastre, 2021. "Regional characteristics and the decision to innovate in a developing country: A multilevel analysis of Ecuadorian firms," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1337-1354, December.
    6. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2023. "Firm innovation and generalized trust as a regional resource," Research Policy, Elsevier, vol. 52(8).
    7. Stefano Amato & Rodrigo Basco & Fernanda Ricotta, 2023. "Family firms, Regional Competitiveness and Productivity: A Multilevel Approach," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 35(7-8), pages 666-694, August.
    8. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2022. "Firm innovation and generalized trust as a regional resource," ifh Working Papers 32/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    9. Paula Prenzel & Niels Bosma & Veronique Schutjens & Erik Stam, 2024. "Cultural diversity and innovative entrepreneurship," Small Business Economics, Springer, vol. 63(4), pages 1381-1414, December.
    10. Dong Qiu & Binglin Lv & Calvin M. L. Chan & Yuesen Huang & Kai Si, 2023. "How Does a Smart City Bridge Diversify Urban Development Trends? A systematic Bibliometric Analysis and Literature Study," Sustainability, MDPI, vol. 15(5), pages 1-18, March.
    11. Natalia Davidson & Oleg Mariev & Andrey Pushkarev, 2018. "The Impact of Externalities on the Innovation Activity of Russian Firms," Foresight and STI Governance, National Research University Higher School of Economics, vol. 12(3), pages 62-72.

    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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